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Cloud computing presents both challenges and opportunities for personal computing giants. Microsoft is "re-imagining" Windows for cloud-connected devices. Meanwhile, Intel rethinks its microprocessor strategies for mobile devices and servers, seeking to embrace the cloud at both ends of the consumption supply chain. For these incumbents that defined the personal computing era, the post-PC era future requires leaping from the past, not clinging to it.

Where the "Wintel" marriage is likely to remain strongest is the server. Microsoft's post-PC -- what I call cloud-connected device -- strategy is two-fold: Providing direct, hosted services or applications businesses can host internally and expanding Windows's support for additional chip architectures. For its part, Intel develops microprocessors for more device categories, while optimizing server chips for cloud applications and services, such as the recently announced Xeon processor E5-2600 product family.

For a time, Intel and Microsoft will diverge on desktop and mobile PCs, particularly tablets. Windows 8 "is a completely reimagined operating system for us as an organization", Microsoft COO Kevin Turner says, in his keynote last week during Convergence 2012. "It not only runs great on Intel and x86, it will also be the first operating system on the planet that also runs on ARM and system-on-a-chip. So, the ability to have multiple architectures that we support with a consistent user experience is something that we're just very, very excited about".

Meanwhile, Intel plays catch up in microprocessors that compete directly with ARM. Intel specifically designed the Atom processor Z2460 platform, which some of you may know as "Medfield", for smartphones and tablets.

In January, Intel struck a multi-year, multi-device deal with Motorola Mobility, now owned by Google, for the processor family and others like it. Motorola -- and Lenovo, too -- plan to ship Intel-powered smartphones in the second half of this year.

"By developing the Medfield chip for mobile devices, Intel will open the doors for further innovation for mobile device OEMs by providing a very capable alternative to existing ARM based chipsets," Wayne Lam, iSuppli analyst, says. However, Intel still must solve some power-consumption issues that ARM already has surpassed, as well as gain share as virtual newcomer.

Serving the Cloud

It's the server where there is opportunity pursued but often overlooked in analyses of the Santa Clara, Calif.-based company's chip strategy for cloud-connected devices.

Intel is the overwhelming x86 chip market leader. During fourth quarter, PC and server microprocessors generated $10.9 billion in sales, up 14.2 percent year over year, according to IDC. Intel's overall market share was 80.3 percent, but much higher for servers: 94.5 percent.

As cloud connectivity increases so do demands for servers and storage capable of handling the load. This year, spending on digital technology products will account for 10 percent of the average household's disposal income -- or $2.2 trillion in total, says Gartner, which projects spending to reach $2.8 trillion by 2015.

The rest is here:
Intel rises to the cloud